The current value of future cash ﬂows discounted at the appropriate discount rate is called the:
A) Principal value.
B) Future value.
C) Present value.
D) Simple interest rate.
E) Compound interest rate.

Question

Quizplus · Accepted Answer

The current value of future cash flows discounted at the appropriate discount rate is called the present value. This is because it represents the current value or worth of future cash flows, taking into account the time value of money.

The Current Value of Future Cash ﬂOws Discounted at the Appropriate